Chapter 19—General Ledger and Business Reporting (GL/BR) ProcessTRUE/FALSE1. The GL/BR process is an interacting structure of people, equipment, methods, andcontrols that is designed to accomplish both operations and information system functions.ANS: T2. The business reporting process comprises accumulating, classifying, and record-ing data, fueling the financial reporting, business reporting, and other reporting subsystems.ANS: F3. The general ledger process is concerned with preparing external financial state-ments, ensuring they conform to GAAP, generating Web-based forms of key finan-cial statement and related business reporting via the Internet, and supporting thegeneration of both ad hoc and predetermined business reports.ANS: F4. A feeder process is any business process that accumulates event data that is then communicated to and processed by the general ledger/financial reporting (GL/BR) process.ANS: T5. The managerial reporting officer is responsible for reporting GAAP financial state-ments.ANS: F6. The financial reporting officer is primarily responsible for budgeting.ANS: F7. The controller notifies the business reporting process of investing and financing transaction activitiesANS: F8. The financial statements contain detailed information of all of an organization’s business event data.ANS: F9. A performance report compares actual results with budgeted expectations.ANS: T10. Often, performance reports are part of a managerial reporting system known as aresponsibility accounting system.ANS: T11. A journal voucher is an internal source document used to notify the general ledger to make an accounting entry.ANS: T12. The general ledger master data contains summarized information of all company event data.ANS: T13. An audit trail provides the linkages necessary to trace financial transactions for-ward through the general ledger/financial reporting (GL/BR) process.ANS: F14. Balanced scorecard is methodology for assessing an organization's business per-formance via four components: (1) financial, (2) external business process, (3) vendors, and (4) innovation and improvement activities.ANS: F15. Business intelligence is the integration of statistical and analytical tools with deci-sion support technologies to facilitate complex analyses of data warehouses by managers and decision makers.ANS: T16. XML is an XBRL-based language consisting of a set of tags that are used to unify the presentation of business reporting information into a single format that can be easily read by almost any software package and can be easily searched by web browsers.ANS: F17. XML is a generic web-based language that works on a set of user-defined tags to determine the presentation of information on a web site and to provide a key to the tags that can be applied by web users to easily search a given site.ANS: T18. The intent of Sarbanes Oxley is to protect the company by improving the accu-racy and reliability of all disclosures.ANS: F19. The driving force in constructing a chart of accounts, the goal is to add structure to the classification of financial information.ANS: T20. As we move toward an enterprise system environment, the chart of accounts be-comes increasingly more important.ANS: F21. When implementing an ERP system, it is best to provide all users with access to all menu systems, so they can see what is going on within the system.ANS: FMULTIPLE CHOICE1. The general ledger process comprises all of the following except:a. providing information for financial reportingb. serving the needs of managerial re-portingc. classifying data by general ledger accountsd. none of the aboveANS: D2. The business reporting process comprises all of the following except:a. preparing general purpose external financial statementsb. generating ad hoc and predeter-mined business reports for manage-mentc. ensuring that the external financial statements adhere to GAAPd. none of the aboveANS: D3. In contrast to the managerial reporting process, the financial reporting process prepares all of the following financial statements except:a. the balance sheetb. the income statementc. the standard costing variance reportd. the statement of owner equity changesANS: C4. Typically, you would expect general ledger updates for financing and investing ac-tivities to be fed to the general ledger/financial reporting (GL/BR) process by:a. the controllerb. the treasurerc. the chief executive officer (CEO)d. one of the AIS feeder systemsANS: B5. Typically, you would expect general ledger updates for periodic adjusting entries (e.g., for depreciation, accruals, and the like) to be fed to the general ledger/fi-nancial reporting (GL/BR) process by:a. the controllerb. the treasurerc. the chief executive officer (CEO)d. one of the AIS feeder systemsANS: A6. Which of the following individuals should possess the greatest knowledge of GAAP?a. general ledger accounting depart-ment managerb. budgeting department managerc. financial reporting officerd. managerial reporting officerANS: C7. Which of the following usually would be responsible for preparing operating cen-ter budgets?a. general ledger accounting depart-mentb. budgeting departmentc. financial reporting officerd. operating department managersANS: D8. Which of the following usually would be responsible for preparing operating cen-ter performance reports?a. general ledger accounting depart-mentb. budgeting departmentc. financial reporting officerd. managerial reporting officerANS: D9. Normally, you would expect that operating event data updates would be sent to the general ledger/business reporting (GL/BR) process by:a. the controllerb. the treasurerc. the vice president of financed. various business feeder processesANS: D10. Performance reports to various cost center, profit center, and investment center managers are usually sent by?a. the controllerb. the treasurerc. the managerial reporting officerd. the budgeting departmentANS: C11. Actual and budgeted figures are usually sent to the managerial reporting officer bya. the controllerb. the treasurerc. the business reporting departmentd. the budgeting departmentANS: C12. Actual and budgeted figures are usually sent to the budgeting department froma. the controllerb. the treasurerc. the business reporting departmentd. the managerial reporting officerANS: C13. Adjusted trial balance figures are usually sent from the business reporting depart-ment to the:a. the financial reporting officerb. the managerial reporting officerc. the